Pterosaur fossils from Australia are exceptionally rare. Since the discovery of the continent's first pterosaur some 40 years ago, fewer than 20 specimens have been described. The Lower Cretaceous (upper Albian) Toolebuc Formation of North West Queensland is the most productive horizon for Australian pterosaurs. Herein, we describe a new species of pterosaur, Thapunngaka shawi gen. et sp. nov., from the Toolebuc Formation, near Richmond, North West Queensland. The specimen (KKF494) comprises the rostral portion of a crested mandible and represents the largest pterosaur yet described from Australia. The new species presents features that indicate an affinity with Anhangueridae, which is consistent with their reported cosmopolitan distribution during this period. Thapunngaka shawi can be distinguished from other anhanguerids through the possession of a mandible with a smooth dorsal surface medially and uniquely sized alveoli that are positioned laterally along the jaw. Phylogenetic analysis reveals a close relationship among all Australian anhanguerids and points to an endemic Australian radiation within Anhangueridae. Thapunngaka shawi has the largest mandibular crest of any anhanguerian worldwide, and provides further evidence for the existence of an increasingly diverse range of large crested pterosaurs in the Australian part of eastern Gondwana during the Cretaceous.